- An altcoin rally is anticipated as gold’s breakout and Bitcoin’s (BTC) setup mirror historical bull signals
- Dan Gambardello highlights altcoins like Ethereum (ETH), Cardano (ADA) building strength for a significant surge.
- The broader altcoin market, though currently lagging, shows strong potential for an explosive catch-up this cycle.
After gold’s explosive breakout, market analysts are now watching Bitcoin (BTC) closely, figuring it’s next in line for a huge run-up. According to crypto analyst Dan Gambardello, the current market setup for Bitcoin is strikingly similar to a familiar historical pattern that previously led to significant gains.
The same way gold surged in late 2020 before Bitcoin followed, current charts suggest a repeat may be underway. If true, this could mark the early stages of a full-blown crypto bull market, pulling major altcoins like Ethereum and Cardano along for the ride.
Gold’s Signal and Bitcoin’s Setup
Gold appears to have completed a parabolic move, signaling a potential transition to Bitcoin. Historically, this shift occurred in late 2020 when gold peaked and Bitcoin began its meteoric rise.
Current gold charts show a structural pattern that closely resembles early-stage Bitcoin bull markets. This parallel hints that Bitcoin may be positioned for its own breakout.
Bitcoin has already broken past its previous all-time highs. However, analysts suggest the real parabolic phase has not yet begun. The asset is trending upward in a structured fashion, indicating the bull cycle is still warming up. This phase could be setting the stage for a powerful upward surge that hasn’t yet materialized.
Altcoins: Lagging but Gaining Momentum
While Bitcoin gains attention, altcoins like Cardano (ADA) and Ethereum (ETH) are quietly building strength. Cardano is testing key resistance levels, particularly the 20-week moving average.
Holding above this point often marks the shift from a bear to bull market. ADA has also bounced off crucial support and is challenging an inverse head and shoulders pattern. If momentum holds, a push to the $1 mark is highly possible.
Related: Digital Gold vs. Real Gold: Bitcoin’s Volatile Rally Closes In on $3.5K+ Gold
Ethereum, meanwhile, is approaching a major trendline it last touched during its 2020 consolidation. A successful break above the 200-day moving average could signal strong bullish intent. However, there are early signs of RSI bearish divergence, which could signal temporary weakness if not invalidated by strong price action.
Patience and Psychology in Market Cycles
The broader altcoin market remains 36% below its all-time high, compared to a 253% distance during the last bull setup.
Related: Gold’s 2025 Rally (12 ATHs) Draws Comparisons to Bitcoin Price Action
This discrepancy suggests altcoins may be lagging Bitcoin and gold, but could soon play catch-up in explosive fashion.
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